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Technology Stocks : AUTOHOME, Inc -- Ignore unavailable to you. Want to Upgrade?

To: yellowfintuna who wrote (14791)	8/22/1999 3:20:00 PM
From: Sleeper	Read Replies (1) \| Respond to of 29970

yellowfintuna (may I address you as yft, for brevity's sake?), there is simply no way to know how a final deal will shake out. Much like a poker game, the winner is not always the one holding the best hand. I will share with you what I know on the subjects, some of which is common knowledge and some of which is rumor/conjecture. #1What will TOTAL charge be to an AOL/ATHM/ATT customer? US$39.95/mo., exclusive of modem and installation charges. This is the current charge for ATHM alone, and I can't see them raising the price as the competitive nature of BB services will probably drive prices down, not up. #2 What percentage goes to each? assuming that a deal can be reached among the partners, a weighted formula will have to be devised that factors in each partner's contribution to the entire project. In a nutshell I see the respective partners bringing these assets to the table: AOL- sub base and brand recognition ATHM- BB expertise, content ATT- pipes, infrastructure, marketing expertise Now, factor in intangibles and personalities, as well as market perception of the value of such a deal to all parties, and you have some idea of the complexity of drafting such a formula. #3 Now think about ADVERTISING and E-COMMERCE, how will that be split (or will it be?) between the 3. Please see #2 above. While complex, there is precedent for such a union. Given the laissez faire attitude of the FCC and the almost desperate need of AOL to have BB cable, I think the end result can be achieved. Hope this helps, yft. Regards Sleeper